Eddystone Rail Company: Bringing Bakken Crude to Philadelphia Refineries

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1 Eddystone Rail Company: Bringing Bakken Crude to Philadelphia Refineries Platts North American Crude Marketing Conference Houston, Texas February 28,

2 Eddystone Rail Company Joint Venture between Enbridge and Canopy Prospecting Formed in November % owned by Enbridge and 25% owned by Canopy Phase I Expansion Under Construction Phase II Expansion Under Commercial Development Phase III Expansion Opportunities Available ERC is focused on serving East Coast refineries as an independent rail, marine and pipeline terminal ERC is building a state-of-the-art, high speed crude oil unloading facility with a barge loading terminal and distribution pipeline facilities located at Eddystone, PA 2

3 Enbridge s Expanding US Market Access Norman Wells $14 Billion+ in new crude oil pipeline expansion construction underway Zama Fort McMurray Mainline Optimization Expand with Horsepower & Tanks Seattle Portland Edmonton Hardisty Salt Lake City Regina Bakken USGC Access Cushing Houston Mainline Optimization Clearbrook Superior Flanagan Wood River Chicago Patoka Toronto Buffalo Sarnia Toledo Montreal Ottawa Eastern Access Eastern Access Full Line 9 Reversal (into Montreal) New Line 79 (Twins Line 17 into Ohio) Line 6B: Replace Segments (into Sarnia / Detroit) Southern Access Extension (into Patoka) Other East Coast initiatives Gulf Coast Access Flanagan South (into Cushing) Seaway Reversal (Cushing to US Gulf Coast) Seaway Twinning (Expanded Capacity to USGC) Eastern Gulf Coast Access JV with Energy Transfer

4 Enbridge s North Dakota Pipeline System 355,000 bpd of pipeline export capacity +120,000 bpd of export capacity by rail 475,000 bpd Total System Export Capacity (March 2013)

5 Enbridge s Berthold Rail Facility BNSF Mainline Berthold West (Contract Storage) Phase II Unit Train Facility (80,000 bpd Capacity) Phase I Manifest (Under Expansion)

6 Eddystone Rail: The Key to the Philadelphia Refinery Market Eddystone Rail Company and Delaware River Refineries (excluding PBF Delaware City) Eddystone Rail Company, LLC Philadelphia Energy Solutions, LLC (PES) Philadelphia PES Philadelphia Crude Oil Dock (Hog Island) Monroe Energy, LLC Trainer PBF Paulsboro Sunoco Marcus Hook Eddystone: within 6 miles of ~700,000 b/d of mostly light sweet refining capacity 6

7 Eddystone Rail: Phase I Phase I Capacity: 80,000 bpd Note: Subject to change Phase II Capacity: ~160,00 bpd 7

8 Eddystone Rail Facility Features Phase I (Fully Subscribed Operational Late 2013) One unit train a day of capacity (80,000 b/d) Designed to receive, unload, and have unit trains up to 120 cars ready for departure within ~12 hours 200,000 BBL shell capacity fungible storage tank Crude oil will comply with Philly Light Bakken-esque crude spec Outgoing cargo barge loading Two Berths with drafts up to 34 feet of depth Phase II (Operational Late 2014) Two-plus unit trains per day of capacity (160,000 b/d) Designed for less than 8 hour turn times per 120 car unit train At least double Phase I fungible storage capacity Segregated non-philly Light crude spec Merchant storage should be available Distribution pipelines to PES Philadelphia, Monroe Trainer, and PBF Paulsboro refineries proposed Note: Subject to change 8

9 Eddystone: Uniquely positioned to be the Cushing of the Philadelphia Area Location, location, location Options, options, options. Designed to serve East Coast refineries as an independent merchant rail, marine and pipeline terminal (warm water port) Multiple Rail Carrier Options Facility served by CSX, NS, and Canadian Pacific Fungible Philly Light spec designed to preserve crude quality, facilitate swaps, trades, and other options Philly Light will be Bakken-esque : <0.20% Sulfur, API Accommodates Bakken, Eagle Ford, Permian Basin, Niobrara, and Canadian Light Synthetic Crude sources Segregated storage and distribution pipelines available in Phase II Philly Light fungible spec preserves crude quality and creates trading opportunities 9 9

10 Contact Erik Johnson Kelly Wilkins